FIRE by His Late 30s with THIS “No-Brainer” Investing Strategy

Episode #547

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You could be missing out on the chance to earn passive income from your home (and other rentals!) with a no-brainer money move. This investing strategy is picking up steam and could become one of the big trends in real estate this year. Today’s guest was one of the early adopters, and it carried him to FIRE by his late thirties!

Welcome back to the “BiggerPockets Money” podcast! Today, we’re chatting with “That ADU Guy,” Derek Sherrell. Right before the 2008 housing market crash, Derek left his contracting job behind and returned to school to become a firefighter. Little did he know that this career move would provide the time, freedom, and connections to launch a full-blown side hustle alongside his W2 job. Before the age of forty, Derek became financially independent, with the ability to retire early, all thanks to this simple strategy. Since then, he has made it his life’s mission to inspire countless others to do the same!

In this episode, we’re taking a deep dive into accessory dwelling units (ADUs). Tune in to learn why the combination of serial house hacking and some kind of “secret sauce” (in this case, ADUs) is perhaps the easiest path to FIRE. Derek will tell you everything you need to know about buying, building, and renting out ADUs—from financing these units to scaling your business!

00:00 Intro

02:31 Life with FI & Current Portfolio

06:06 Derek’s Money Journey

12:26 Changing Careers & Building Wealth

18:21 Buying the “Lucky” House

28:14 House Hacking with ADUs

37:20 3 ADU Investing Strategies

49:06 Derek’s BIG Mission

55:58 Connect with Derek!